My personal anecdotal experience suggests that many investors operate under the fallacy: “my mind’s made up – don’t confuse me with the facts.” This behavior often results from only reading the headlines while skimming over the in-depth analysis that is truly needed to make a sound or prudent investing decision.
A current case in point is the attitude towards brick-and-mortar retail that many investors currently hold. Commonly referred to as “the Amazon effect,” many investors believe that brick-and-mortar retail is dying, and all sales will soon be done only online. Moreover, many investors go as far to believe that Amazon will be the only retail outlet left standing when all is said and done. However, I would personally argue that retail is experiencing a transformation, but not an apocalypse as many people fear.
This opinion was recently shared by Wall Street Journal news editor Lee Hawkins in the video titled “Why There’s No Retail Apocalypse.”
As the video pointed out, online sales are growing significantly faster than brick-and-mortar sales. However, even though they are growing faster, they still only represent approximately 10% of total retail sales. Therefore, 90% of all retail is still conducted in stores as evidenced by the two screenshots from the video below: